How to make a claim on your auto insurance?
When should you claim on your auto insurance? How should you go about applying for cover from your auto insurance? These questions are vital if you want to use your car insurance which is after all why you bought it. Many people view auto insurance as a necessary evil in order to be able to drive. It is much more than that, it can save your bacon when you have suffered an accident and you are under fire from those involved in the accident. This is especially the case if you were at fault in the accident.
When should you claim on your auto insurance?
1) You should claim when your auto insurance covers the claim you are making. As you know car insurance as all kinds of insurance have clauses and fine print which often qualify the coverage the insurance company provides. Before you make your claim re-read the insurance policy and make sure your insurance covers the damages you caused or received. For instance, heaven forbid it, but if you were driving under the influence of alcohol when an accident occurred you auto insurance might very well not cover your claim. You might be without cover if you were driving outside your country without contracting extra auto insurance. As you can see it is very important to understand what you are covered for and what you aren’t insured for as it could mean the difference from having to undergo some paperwork and mild discomfort and economic disaster and even bankruptcy.
2) You cannot claim from your insurance if the cost of the claim is lower or equal to your deductible. A deductible is a cap you place on your auto insurance coverage to reduce the cost of the premiums. What deductibles do is share the risk of insurance between you and the auto insurance company. The deductible can be set at any level, 100 dollars, 1,000 dollars or higher. This will mean that the first 100, 1,000 dollars or whatever amount you decided as your deductible will be paid by you, anything over and above might be covered by the auto insurance company.
3) Even if you are covered by your auto insurance and the cost is above your deductible it still might not be worth your time or money to claim. This is so when the cost of the claim is only marginally larger than the deductible but will affect your no claim bonus, increasing your next year’s auto insurance premium.
In every case it is a good idea to contact your broker. He is your friend in these matters because he / she is highly motivated to keep you as a happy customer. Auto insurance brokers like all insurance brokers receive residual commission every time you renew your auto insurance. If you are unhappy with your auto insurance company and cancel your coverage y0ur broker loses his commission. He / she cannot authorise your claim approval but he can help you make the right moves to increase your chances of getting your claim approved.